External Dependencies

Definition ∞ External dependencies refer to the reliance of a system, protocol, or application on components, services, or data sources outside of its immediate control. In the cryptocurrency space, these can include oracles providing off-chain data, third-party APIs, or even the stability of interconnected blockchain networks. The failure or compromise of an external dependency can propagate adverse effects throughout the dependent system.
Context ∞ News regarding external dependencies often surfaces when an oracle failure, API outage, or a compromise in a related protocol leads to disruptions in a cryptocurrency system. Understanding these dependencies is vital for assessing the robustness and potential failure points within the complex, interconnected web of digital asset infrastructure.